In today’s briefing:
- Coinbase: From Sleeping Giant To Industry Leader
- Remitly – Rev +49% | ROW Rev +120% | Scaling: COGS -25% | Adj EBITDA Margin 2Q23 Is 8.7%, Highest
- ECVT: Story After Maintenance
- Steelcase, Inc. – 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured
Coinbase: From Sleeping Giant To Industry Leader
- Coinbase sees the looming opportunity in the global crypto futures & derivatives market. It’s positioning itself to capitalize on a market that’s been hollowed out over last 12-18 months.
- We explore 3 key areas of Coinbase’s business that we believe Wall Street is overlooking. These include: Coinbase International, ETF Spot approvals, and Base Chain
- We estimate Coinbase has the potential to realize additional top-line revenue in the range of 15-20% on the low-end to +150% increase on the high-end over the next few years.
Remitly – Rev +49% | ROW Rev +120% | Scaling: COGS -25% | Adj EBITDA Margin 2Q23 Is 8.7%, Highest
- Remitly (RELY) offers remittances services with 5m active customers, in over 170 countries, with 4 billion bank accounts, and 4,800 corridors, mostly to persons in US, Canada.
- Revenue growth is strong at 49% YoY in 2Q23 and averaging 43% YoY for the preceding 5 quarters, with active customers up 474,000 in 2Q23 QoQ vs 371,000 in 1Q23
- Costs remain high, GAAP earnings are in loss, but this is due to stock-based compensation; adjusted EBITDA is now USD20.4m in 2Q23 from an adjusted EBITDA loss YoY
ECVT: Story After Maintenance
- ECVT has faced two maintenance challenges this year that should be out of the way by the time the Company reports third quarter results.
- Third quarter sales could remain subdued from the maintenance downtime but should rebound in the fourth quarter with demand for ecoservices remaining elevated
- ECVT’s stock has suffered from a series of block sales and the business undergoing two unplanned maintenance downtimes this year
Steelcase, Inc. – 2QFY24 Beats on Strong Deliveries; Order Trends Still Pressured
Post Tuesday’s close, Steelcase reported 2QFY24 adjusted EPS of $0.31 and revenue of $855 million, both better than consensus of $0.20 and $829 million.
Deliveries accelerated as supply chain constraints abated. Pricing and margin improvements gained traction, aiding sales and buoying gross margin to 33.2%, up 411 bps versus 2QFY23 and 195 bps above our estimate, which we felt was aggressive.
Steelcase delivered a 6.2% 2QFY24 adjusted operating margin, ~+2% Y/Y and 170 bps above our estimate.
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